Students who cannot afford to pay the university fees each year can accumulate the debt under the Higher Education Loan Program (HELP). Repayments are payable once their income exceeds a specified amount. The outstanding debt is indexed on 1 June each year.
Voluntary HELP payments can earn a discount to help reduce the debt. Parents looking for a Christmas gift for their children may wish to consider helping with the repayments.
Voluntary payments of $500 or more received by the ATO before 31 December 2011 will qualify for a 10% bonus. This reduces the debt by a further 10% of the voluntary repayment amount.
Interest rates go up and down, and depending on which stage of life you are in you may be happy or anxious when they change. If you have a home loan, the recent fall in interest rates was probably welcome news.
On 1 November 2011, the Reserve Bank of Australia (RBA) decided to reduce the official interest rate for the first time in 31 months. The RBA cut the official rates by 0.25% to 4.50%.
As a result, many banks have reduced interest rates on loans. If you have a mortgage with a variable interest rate this may have reduced the amount the bank requires you to repay each fortnight/month, leaving you with additional money to spend, pay off debt or save. (more…)
In recognition of the ongoing volatility in markets and the effect this has on retirees, the Government has announced a further extension on the reduction of the minimum payments from account-based pensions. The standard minimum payment factors will continue to be reduced by 25% throughout 2012/13, and so will be the same percentages that apply in this financial year.
On 11 September 2011 the Treasurer Wayne Swan announced changes to the Government Guarantee on savings deposits. The $1 million cap on government bank deposit guarantee will not lapse in October 2011 as initially planned, but a new permanent ceiling will take effect in February 2012. The new cap will be down to $250,000 per person.
Accordingly, the Government Guarantee of $1,000,000 per person/entity per institution will be extended until 31 January 2012. From 1 February 2012 a new permanent cap of $250,000 per person/entity per institution will be introduced.
How much income level a person needs in retirement is one of the most important questions to consider when planning for retirement, but it can be difficult to accurately project. Most people don’t have a good idea of what expenses they will incur in retirement until they actually get there, so using a standardised measurement, such as the ASFA Retirement Standard, as a guide can help plan properly. (more…)
Tempted to use the equity in your home to consolidate your debt or maybe take a holiday or buy a big screen TV? What about buying the best home you can afford? Think again: the past decade has seen bankruptcy become a middle-class “phenomenon”. Even if you aren’t stretched financially, here’s a few things to consider. (more…)
If you are concerned about “just where” your money goes, and would like a greater understanding of how much you spend on what, then Summerhill Financial Services’ new Personal Bookkeeping Services are for you. But rather than being a “big stick”, the knowledge will give you greater understanding, and, therefore control, allowing you to make more informed decisions about spending and saving.(more…)
The Australian Federal Government has recently released further details on the Cash Guarantee. The new release provides information on the introduction of a $1 million fee-free threshold, plus details the fee structure and how the cash guarantee affects foreign bank branches and other investments. The Government guarantee is designed to promote financial stability during the current economic conditions.
The Government has made amendments to the original proposal of the First Home Saver Accounts, which are due to be available in October 2008. A summary of the Bill which has now received Royal Assent is outlined below. (more…)
